Transcript
Hello. Oh yeah. Oh live From your leaf, blowers existential crisis. It's a mildew Monday edition of business pants. Joined as always by our BS correspondent, Matt mascardi. I'm the sectional sofa that does not fit into your new townhouse. And today, is magnificent jawbreaker called October 17th. 2022, sexy story updates and sleepy academic papers is that true? We have something to do. It's with the dong. I love the gong. Makes me feel like we're moving on to something else. Yes, we do have these academic moving on to Comedy from the 90s, Everything was like, the 60s not the 90s same difference. Um, why can we address first? If you're watching the live stream, and I know you're not because there's nobody, that is no one watches it. Yeah, I don't know why nobody watches, but if you were sitting in like a white bunker, like I'm alert, I'm pretending to be Emma lurking. You know what's happening? First of all, where is Emma? No one's heard, no one second of all their tails, someone actually asked me yesterday. A fan of the show listener is that Emma's last is Emma's last name really lurking and I looked at him. And caught my head. As if to say, wow, you really are stupid. And then I moved on. I moved on. Did you say that? Why why'd you pull your pulling punches? Yeah, I'm out of the studio today. I'm holding up my mic, but I'm again, I'm dedicated to business pants and dedicated everything we do here. So let's do it. You ready? All right. Let's do it. Let's do a quickly so that you can get off the floor. Yeah. Forget where I am? Who I am. It's Monday. Matt its kind of your favorite and least favorite day because you get to sit back and react but you're going to hate everything I picked. So ready good that's a good primer here. Something like breaking news or give me something. Yeah you want some breaking news. Are you gonna break some news though? No, I'm gonna quit. Okay, I'll start some random updates. So again, all these tailored really for you. Matt, first of all, a passenger who is suing Carnival Cruises over. Its handling of covid-19 said. We had assumed that there was no coronavirus on that ship when we boarded and I recognized now it was probably very stupid. Now of us to have that view. That's a great View. What kind of what kind of a thing is that to say when you're suing the company, Why would you say first of all, in? Do you just admitted that you're stupid? And that you? Yeah, it's not great. It's not a great lawsuit. It's not a great. It's weird one. I don't know why you admit that, but I think Carnival Cruise is, was sort of pretending like they had it covered though. No. I mean, there's not enough bleach in the world to cover those cruise ships so but yeah, there were sailing And they pretended like their protocols were going to keep you safe. I'm, we've given up on the idea that like anyone's gonna not take a cruise and or believe that it is a floating petri dish. I'm just I'm past it Beyond Meats, knows eater, CEOs officially gone. Oh yeah, we this is how the corporate world it's great. This is a good lesson for how the corporate world works. You bite someone's nose off, you get suspended, okay? And then a few weeks later, they put out a very quiet 8K, a very quiet filing with SEC saying, oh yeah, that guy is gone now. Oh, okay, yeah, here's what else is going on me. See if cfo's also gone. How about that? How about that month for beyond me? Yeah, not their best. Not their best showing, wait, I asked this on Friday, I'm gonna ask it again. Is this a coordinated effort to confuse us? Like they actually weren't gonna fire the CEO Knows by her but they they fired a whole bunch of other people and just like slid him in. Here's the real question is, there's a lot a lot of new executive hires because the stock price is plunged from 110 dollars to 13 dollars, but none of the new hires are from Tyson Foods. What's going on, why? If ah, no moving on random updates. Here's a my favorite Airline clickbait porn from Business Insider this week, you ready? Oh, this is still going on. Yeah, still going on but this one is just, you know, ridiculous Flames. Shot out of the the engine of a United Airlines. Yeah, exactly. I'd have a United Airlines plane after a bird strike forcing it to return to O'Hare. Yeah. I always wonder, why doesn't that happen? More? Which part the birds strikes, okay, I think like this is just stupid reporting about. Update in the stakeholders. Rule category Matt Apple's Oklahoma City store is second to unionize after vote. Oklahoma City. Who had Oklahoma and the unionization poll. Nobody. I know it was on the list, although I'm not sure I had buffalo on it for Starbucks, either, did I set your watches Matt? We're we're probably 12 hours away from the Governor of Oklahoma has already decrying woke. Corporations woke that Rocky is she must be preparing a statement against this, right? This seems very Wok to unionize and fight for your oh definitely. Yeah well I mean well he doesn't actually know what happened because he doesn't do ESG because ESG is a liberal agenda so he's no date on whether or not they actually unionized because that's a data point that that's captured in any other form. So he doesn't know. So he's not preparing the statement because it's so woke. As he doesn't know to, it's better not to know. The crying CEO. Remember the crying CEO remember him Hypersonic CEO, Brady Wallach? Yeah, he's back in the news. First. He was Under Fire for crying on LinkedIn, about I think about like, what laying people off now. It's about his grandmother. Okay, he's back. He's back crying on LinkedIn. What he had to say, he said my grandma passed away today. Oh, I yeah, I got the text from my mom, close my computer and headed straight over to her house while driving to my moms. I always remind I was reminded days. Like today are why I do what I do. What, what does he do? I don't know. You run to company. I mean, really you're on the social media company, I guess he's getting crap for he's. He's promoting his company throughout this whole crying post while also crying about his grandmother. I don't You know about this person. Moving on all moving on. Oh, crazy conservative, social media and the news. Matt, two companies that we've talked about first trumps Social media company. What is it? Truth truth out. What is social? Yeah, truth social here's the big news. Out of Truth. Social this is right up our alley. Co-founder of Truth social will Wilkerson filed an SEC whistleblower complaint in August. This is breaking out of the Wall Street Journal. it said that Trump's Trump's two adult sons. If you want to call them, that wanted stakes in the company, they were asking for handouts. Despite the fact that Trump owned 90% of the company, the suns were bad during the co-founder for free sharees. And again, despite the fact, the co-founder reported that the Suns did nothing for the company. Nothing. What? And all. Yeah, a couple of jumps kids wanted something for nothing. I know and also I thought same report. What is out of the Washington Post? That another executive. What's her name does? Do you even care former? Andy litinsky was pressured by Trump to give free shares to Trump's wife Melania Trump. They The Whistleblower complaint claims that. When they did not give her free shares, they eventually fired her from the board. Oh, about this. This is like amazing. We don't get this type of board. Wait a minute. Oh, this is. Did they give the shares to the kids? It looks like they know they stood their ground. It looks like. Yeah. All right. Good. This is great. This is a great founder story because this founder Trump owns, 90% of the shares and was still demanding more free shares. I mean, 90 is less than 100. And you could have all these people work for you and get no shares. Also in Social conservative social media platforms. Remember parlor. I do yeah. Now yes it still exists and who is gonna buy it? The last week's most famous anti-semite Kanye West. Buying buying parler. What kind of a world is this? What really what's going on? I give any idea there's there's for years. Exactly the Liberals were called snowflakes have we just transferred snowflake ISM over to the conservatives, they have to like buy whole companies so that they can feel like they're protected to say. Anti-semitic speech. Yes, that's exactly. If you want to be an anti-semite and you're rich conservative, you should buy either truth social Twitter parlor. Go out by one. You can't afford Facebook, just buy a different one. It's true. There's a little there's a bunch out there that no one cares about. So go buy it, moving on, let's get to our founder fetish updates, we have a bunch of founder. Updates for you remember. Nikola founder, Trevor Milton. One of our favorite Ponders He's the one who faked that his EV car could actually work by shooting video of it, rolling downhill. Remember him? Yeah, yeah, that's actually how we built our platform, too. We shot video of directors doing things. And then said that, it was our metrics. This is why you should always listen to business pants first, because we're ahead of everything. Trevor Milton was just found guilty on of three of four counts of fraud on Friday facing up to 25 years in prison. Essentially, they're saying that he lied about everything. What? Yeah, he pretty much lied about the entire. How many of these news? You know what, I did see though, I did see someone on LinkedIn which is a Bastion of you know, thought leadership say that. This is why ESG is a scam because Nicola was a, an electric vehicle company, it had all the ESG and now it's a fraud and see it was. This is from all along, I'm telling me I saw this post, wait my head is spinning because he is also covering corporate governance covering the people who run the companies. So my head is spinning. What do I went? And I looked at up and Nicola actually was poorly rated because of the G and the S, the e was actually mediocre because it actually hadn't produced any cars really? So I was great though. It was great because it fits the narrative like why you use facts when we could just say things out loud. Blah, blah musk. I hate to tell you in the news, raising hopes for a Tesla stock buyback with a one-word tweet to the Tesla's, third biggest shareholder. The this shareholder Leo, kagu has previously called for a buyback of five to 10 billion dollars and Elon Musk tweeted noted, We do, can we? Like every time the guy sneezes we're looking is he the Messiah? I still want to know you. Are you do you follow Elon Musk? Like, I don't follow us. The I'm with the SEC on this one. I What the hell do you do about this guy? I mean, why are you allowed anything in this case, though. He said it but you know, right, but he's us, he's still manipulating markets in some way, was this business inside her report. Because yes, so I'll move on. I mean this is literally he sneezes he's he puts a poop emoji out and where it's a 48 hour news, cycle on on Business Insider. Did you see last week Elon Musk was telling the government that he can't afford to pay for starlink and Ukraine anymore to see that I saw that. Yeah now he's backtracking saying to hell with it. He's gonna pay. Oh yeah. All right. Finally, this I always knew he had in his heart. I knew. Uh, let's one more on must wait, for you, that's Skips a whole bunch of stories in between, in which they found out that he like, had talked to the Kremlin in between at some point, right? Like Remember the reason why I bring all this up is the same reason why I brought up Trevor Milton is that, when we talk about people, they eventually get convicted for fraud. That's true, just warned Tesla shareholders. The morning to talk about next one more about mosque. I have a question for you. Matt, how many times in 2022 has Elon Musk tweeted a reference about either 420 or 69 Oh, I guess I'm going to say you'd think I would say 72 72 times. Oh, you're quite a bit High. I he actually is on a 22 times. I thought that was a very that's come on up your 420 game, a CEO of 17 S&P. 500 companies is making 69 references and tweets. What does What's the context there? The context. There is not enough of them. That's okay. All right. And I think files wrap up our founder, fetish and wrap up our story updates with, oh, this Zuck, Mark Zuckerberg. Oh, he's still exists. Yeah, it turned out. Well, first of all, there's a big, I'm not gonna belabor this story. There's a big story again on a Business Insider that meta has spent 15 billion dollars so far on its metaverse project called reality Labs. Oh see how clever they are. They called their metaverse Project Reality Labs. Yeah I was confused. I was like, I thought this was a lab about reality but They really got me and business inside are doing some clickbaity populist, math fun, telling you that the losses from reality lab. So far are worth more than the total market caps of American Airlines. JetBlue Spirit blah blah blah worth more than the Dallas Cowboys and New England Patriots blah, blah blah blah. Again everyone's making fun of sucks so far, but I still think their people are missing the point. I mean, he's, he's hard at work. He's good at the point. He's gonna get it figured out and we're all gonna be miserable. But here's my point. We already are, let me end on this. Mark Zuckerberg, last week had a big reveal of his legs in the metaverse, right? But as it turns out, man, just like Trevor Milton and his EV truck that rolls downhill. Zuck's legs are actually just animations created from motion capture. It was an aspirational. And instead of a demo of the actual feature, his legs are actually a real thing in a minute. This is never melting fraud legs, That is, I know you're laughing at me, but this is the same damn thing. I'm sorry, without a doubt, the greatest moment in business pants history, thank you, but Mark, Zuckerberg's legs were fraudulent and the metaverse no idea. Like, that's all I got for sexy story updates. What do you think that was? I don't want to, I want to, I want to keep thinking about fraud, like, for a second. So, yeah, go for yeah. That's Rod. Legs. Not right. All right. Let's do a nerd alert. Come on. Look. This is actually one of my favorite nerds that I've ever found because it's so stupidly simple. Well, here's the name of the paper. The I'm not going to believe her this. The name of the paper is Bored gender, diversity, and managerial of few skatan evidence from the readability of narrative. Disclosure in 10k reports, Muhammad Nadeem from the University of otago in New Zealand, of course, the papers really simple. It looked at 6000 10K filings for the Russell. 3000 in a like 16 year span 20 years, 2002 to 2018 for readability. Okay, And readability is basically how simple and direct is the language in the annual report. That's just ability is okay, but it's just the part, not like the stock part. It's like the management discussion and Analysis. So the part they actually have to write every single year. The part I looked in for too many years of my life. Yeah, I want you to take a deep breath before you listen this. Okay. Here it is. Increased independent female representation on the board of directors, particularly on the auditor compensation committees. Yeah. Has the statistically significant positive correlation with readability. What? That is correct. Women when added to the board, particularly in places where they have to review, and edit 10K management, discussion and Analysis. They tell their male idiot counterparts to shut the f up and write in plain English. Stop using clever terms like Synergy and Paradigm and level set in just write the thing in English. Really charts. That's what the paper says. I'm actually intrigued. This paper comes a full eight years, after a paper, called our female CFOs better at improving readability of the annual reports by Kim and Chung who also looked at Russell 3000 and annual reports and shocker they found that female CFOs use quote less complicated words in the text and more detail. Numerical presentation in the tables and they found that switching from a male to a female CEO. Quote significantly reduces information asymmetry. Wow, significantly reduces. Can I just say that? That let's not forget that we reported to back in the mothership that women are more educated than the men. So it's not like they're doing this because they're idiotic. That's correct. That's correct. So I'm just going to give you some data from our own are the data queen and the float analytics Department. And this is data, you can only get here only 7% of the largest 2,300. Publicly traded us. Companies have more women on the audit and comp, committee's Or have more female influence on the board and those committees. Then when do you can have to won't describe that a bit more detail on lost. So you can count diversity as the number of women on the board, right? That seems so old-fashioned though I just count the body. It's like I could be like so fashioned man who would do that anymore? There's three women shape objects on this board. Yeah, I can do that. Or you can count the power that they actually have to make change the influence. They have over the board. So we do the last amazing. Well everyone else says the former, okay, I love it when I'm saying is that 7% of the companies actually have either the body's or the influence on these on these boards and these committees, which means we estimate here at free flowed, that more than 90% of us company reports will read like some mash up of War and Peace and Ulysses. Like total fucking nonsense. Oh, that's that's what I have to say. That means you need what you need to do. Is you need to put more women on the board, just home on the board, put them in the Committees. How dare you equate your average male director with James Joyce. How dare you really honestly, what are you Irish now? Aren't you? The opposite of Irish? What is the opposite of Irish English? Hello, that's not you either. So you're you're perpendicular to Irish I suppose that's Damien rolles. And Matt McCarty, we are free float media. Damien's. Next show will actually be from a bunker somewhere under the Atlantic Ocean. Make that happen. And we'll be back tomorrow to bring you that show. In which, what are we doing? Tomorrow morning exit. Corporate theater Tuesday, corporate theater. Tuesdays, my favorite show data, Wednesday. Come on. Walk data Wednesday. Oh, I got a good walk data thing for you until then goodbye.